The Business Landscape in Portugal
Portugal’s business landscape is characterized by a resilient economy, strategic location, and a commitment to innovation and sustainability, making it an attractive destination for investors and entrepreneurs.
Economic Overview
Portugal has demonstrated robust economic performance, with a GDP growth of 6.7% in 2022, primarily driven by a strong rebound in tourism and private consumption. However, growth moderated to 2.3% in 2023 due to global economic uncertainties and rising interest rates.
The Bank of Portugal projects a growth rate of 1.6% for 2024, anticipating gradual economic recovery supported by private consumption and investment.
Key Sectors
Technology and Innovation: Lisbon has emerged as a significant tech hub, recognized as the 2023 European Capital of Innovation. The city supports a vibrant startup ecosystem, with initiatives like the Unicorn Factory Lisboa aiding over 820 startups and facilitating substantial investments.
The government’s favorable policies, including tax incentives and residence visas for entrepreneurs, further bolster this sector.
Tourism and Hospitality: Portugal remains a top tourist destination, renowned for its historic cities, scenic landscapes, and rich cultural heritage. The tourism sector significantly contributes to the economy, with continuous investments enhancing infrastructure and services to accommodate growing visitor numbers.
Renewable Energy: As a leader in renewable energy, Portugal has invested extensively in solar, wind, and hydroelectric power. The country’s commitment to sustainability offers ample opportunities for businesses specializing in renewable energy solutions and technologies.
Healthcare and Biotechnology: The healthcare sector is expanding, with investment opportunities in biotechnology startups, medical tourism, and elderly care services. The fragmented market presents potential gains from consolidation and innovation.
Investment Climate
Portugal maintains an open-door policy toward foreign direct investment (FDI), with total financing under the European Fund for Strategic Investments amounting to €4 billion, set to trigger €13.5 billion in additional investments.
The country has risen to 8th place among European economies attracting the most FDI projects, reflecting its growing appeal to international investors.
Business Environment
The Portuguese government has implemented measures to enhance the business environment, including tax reforms and incentives for startups. However, challenges such as a complex tax system and rigid labor market persist.
10 Business Ideas to Start in Portugal
1. Tourism and Hospitality Services
Portugal is one of the world’s most sought-after tourist destinations, celebrated for its historic cities, breathtaking beaches, and rich cultural heritage. A business idea to start in Portugal could involve launching a boutique hotel, charming guesthouse, or eco-lodge designed to attract both local and international travelers seeking unique experiences. The tourism industry in Portugal continues to thrive, offering opportunities to tap into niche markets with tailored offerings.
Specialized services like guided historical tours through UNESCO heritage sites, adventure tourism such as hiking in the Serra da Estrela mountains or surfing in Peniche, and food and wine tours highlighting Portugal’s culinary delights can further enhance your business prospects. For example, offering curated wine-tasting experiences in the Douro Valley or showcasing traditional Portuguese cuisine in cooking workshops could draw a loyal clientele.
To make your business venture in Portugal stand out, consider targeting specific regions. The Algarve is perfect for luxury tourism, with high demand for premium accommodations and services. On the other hand, rural areas like Alentejo or the Azores are ideal for eco-conscious travelers seeking sustainable tourism options. Incorporating elements of Portugal’s cultural authenticity and natural beauty into your business model can set your venture apart in this competitive industry.
2. Real Estate and Property Management
Portugal’s thriving real estate market presents a wealth of opportunities for entrepreneurs considering a business idea to launch in Portugal. With increasing demand from expats, retirees, and investors attracted by the country’s quality of life and favorable residency programs, real estate ventures are particularly promising.
Starting a business in real estate brokerage can involve assisting clients in buying or selling properties, especially in sought-after locations like Lisbon, Porto, or the Algarve. Alternatively, you could specialize in property management services, such as overseeing vacation rentals, managing maintenance, or handling leasing arrangements. These services are in high demand, particularly among foreign property owners who need reliable local management.
Portugal’s Golden Visa program, which allows foreign investors to gain residency through investments, has further fueled interest in the real estate sector. A profitable business idea in Portugal could be catering to this market by offering end-to-end solutions, including finding eligible properties, navigating legal procedures, and providing ongoing support to investors.
For added value, consider focusing on emerging trends such as sustainable real estate. This could include promoting eco-friendly building projects, helping clients invest in energy-efficient homes, or managing properties that align with green living principles. Coastal regions and smaller towns, where property prices are lower but demand is growing, offer untapped potential for businesses in this sector.
3. Food and Beverage Ventures
Portugal’s rich culinary tradition and vibrant food culture make it an ideal environment for anyone exploring a business idea to start in Portugal in the food and beverage sector. From traditional dishes to modern culinary trends, there are numerous niches to consider, each with strong market potential.
Restaurants, cafés, or bars featuring Portuguese classics like pastel de nata, seafood specialties like bacalhau (salted cod), or regional dishes from Alentejo or Madeira can appeal to locals and tourists alike. Adding a twist by offering fusion cuisine that blends Portuguese flavors with international influences can set your venture apart. For instance, combining Portuguese seafood with Japanese techniques for a sushi-bar-meets-Mediterranean concept could attract adventurous food lovers.
Catering to the expat community is another excellent approach. A profitable business venture in Portugal might involve creating a menu inspired by global cuisines, offering international dishes that resonate with expats from the UK, USA, or South Africa. Moreover, meeting the growing demand for organic, vegan, and farm-to-table dining can attract health-conscious locals and tourists. Restaurants and cafes that emphasize sustainability and source locally grown ingredients have been particularly successful in urban areas like Lisbon and Porto.
Wine bars are another promising niche. Portugal is renowned for its wines, and a business specializing in showcasing regional varieties from Douro Valley, Alentejo, or Dão can attract wine enthusiasts. Consider adding unique experiences, such as guided wine tastings, pairing dinners, or vineyard tours, to make your business venture in Portugal stand out.
Additionally, food tourism is on the rise. Launching a business that offers culinary workshops, food tours, or pop-up dining events can capitalize on Portugal’s reputation as a foodie destination. Regions like Porto, known for its Port wine, and the Algarve, with its seafood festivals, offer prime opportunities for creative food and beverage concepts.
4. Renewable Energy Solutions
As a global leader in renewable energy, Portugal provides an exceptional opportunity for a business idea to launch in Portugal that focuses on sustainability and eco-friendly solutions. With its commitment to green energy and the increasing adoption of environmentally conscious practices, the country is an ideal market for innovative and impactful ventures in this sector.
A promising idea could involve starting a business specializing in the installation of solar panels or wind energy systems for residential and commercial properties. Portugal’s abundant sunshine and favorable conditions for wind energy make these solutions highly attractive to homeowners, businesses, and even local municipalities. Offering comprehensive energy audits to help clients identify ways to reduce consumption and transition to sustainable energy sources is another valuable service.
Expanding into eco-friendly solutions, such as rainwater harvesting systems or energy-efficient home retrofits, could broaden your offerings. Providing green building consultancy or promoting the adoption of geothermal heating and cooling systems are additional niches to explore. These services align with the Portuguese government’s sustainability goals and growing consumer demand for environmentally friendly living.
To increase your success, consider forming partnerships with local governments or private developers who are keen to implement renewable energy projects. You could also explore offering financial incentives or flexible payment plans to encourage more homeowners and businesses to adopt green technologies. These strategies can help differentiate your sustainable business idea in Portugal and attract a broader customer base.
Another area with potential is electric mobility solutions. Developing a business that installs EV (electric vehicle) charging stations, either independently or in collaboration with urban infrastructure projects, aligns with Portugal’s push for green transportation.
5. Tech Startups
Lisbon, often referred to as the “Tech Capital of Europe,” is a vibrant hub for innovation and entrepreneurship, making it an ideal location for a business idea to start in Portugal in the tech industry. The city’s dynamic startup ecosystem, supported by government initiatives, co-working spaces, and tech accelerators, provides fertile ground for ventures in cutting-edge fields like fintech, artificial intelligence (AI), blockchain, and e-commerce.
Fintech, in particular, is gaining momentum as digital payment solutions, cryptocurrency exchanges, and financial management platforms become increasingly popular. Launching a business venture in Portugal focused on disruptive financial technologies can attract investors and clients looking to modernize their financial operations. Similarly, blockchain technology offers opportunities to create innovative solutions for supply chain management, data security, and smart contracts.
Portugal is also an emerging leader in AI and machine learning applications. Businesses that provide AI-powered tools for sectors such as healthcare, education, or logistics can tap into a growing market. Health tech, in particular, is a promising niche, as digital healthcare platforms and telemedicine solutions are becoming more prevalent.
E-commerce continues to expand rapidly in Portugal and globally, creating opportunities for startups that specialize in developing online marketplaces, dropshipping platforms, or digital marketing services. Leveraging the talent pool in Portugal’s skilled workforce, particularly in software development, can help your tech business idea in Portugal scale efficiently.
Lisbon’s thriving tech scene is further supported by events like the Web Summit, which connects startups with investors, industry leaders, and global partners. Participating in such events can boost visibility and open doors for collaboration. Other cities, such as Porto and Braga, are also growing as tech hubs, offering opportunities to launch in less saturated markets.
6. Health and Wellness Services
Portugal’s stunning landscapes and growing emphasis on health-conscious living make it an ideal destination for a business idea to launch in Portugal within the health and wellness industry. From fitness centers to wellness retreats, there are numerous opportunities to create a successful venture that caters to locals, expats, and tourists alike.
Gyms and fitness studios that offer tailored services, such as group fitness classes, personal training, or specialized programs like Pilates or CrossFit, are in high demand. You could also target niche markets by opening yoga studios that incorporate beachfront yoga sessions or mindfulness practices inspired by Portugal’s serene coastal environment. These activities not only promote physical health but also cater to the increasing interest in mental well-being.
Wellness tourism is another thriving sector in Portugal. Establishing wellness retreats in picturesque locations such as the Algarve, Douro Valley, or Madeira can attract visitors seeking relaxation and rejuvenation. Offering spa treatments, detox programs, and alternative therapies like Ayurveda, acupuncture, or sound healing can set your retreat apart.
A profitable business idea in Portugal could also include outdoor wellness activities that leverage the country’s natural beauty. Guided hiking retreats, forest therapy in the lush Sintra-Cascais Natural Park, or water-based wellness like paddleboard yoga or open-water swimming clinics appeal to the growing trend of combining physical activity with nature.
Portugal’s aging population and increasing number of health-conscious expats also create opportunities for businesses focused on preventive healthcare and holistic well-being. Nutrition counseling, wellness coaching, or launching a health food store specializing in organic and locally sourced products could be lucrative options.
For an innovative approach, consider integrating technology into your health and wellness business in Portugal. Apps that offer virtual fitness coaching, online meditation sessions, or wellness subscription boxes could tap into the digital wellness trend while expanding your customer base beyond Portugal.
7. Agribusiness and Organic Farming
Portugal’s fertile land, favorable climate, and strong agricultural traditions provide a solid foundation for numerous business ideas to start in Portugal in the agribusiness and organic farming sector. With growing consumer awareness around sustainability and healthy living, there is increasing demand for organic and locally sourced products, making this a highly lucrative industry.
Organic farming offers significant opportunities. Growing fruits, vegetables, or herbs using sustainable practices can appeal to health-conscious consumers, both locally and internationally. Expanding into niche markets, such as organic honey production, rare herbs, or exotic fruits, can set your agribusiness in Portugal apart. Collaborating with local farmers’ markets, organic food stores, or subscription delivery services can further enhance your reach.
Producing high-quality, value-added products like olive oil, artisanal cheese, or wine is another excellent niche. Portugal is renowned for its premium olive oil and wine, with regions like the Alentejo, Douro Valley, and the Azores offering ideal conditions for production. Exporting these products to international markets or selling them locally through specialty stores can establish a strong revenue stream.
Agro-tourism is a growing trend that blends agriculture with tourism, creating unique visitor experiences. A business idea to launch in Portugal could involve opening a farm stay where visitors can immerse themselves in rural life, participate in farming activities, and learn about traditional Portuguese agriculture. Wine-tasting tours, olive oil production demonstrations, and hands-on cheese-making workshops are examples of activities that can attract tourists looking for authentic experiences.
Investing in innovative agricultural technologies, such as hydroponics, vertical farming, or smart irrigation systems, can enhance efficiency and sustainability. These modern methods are gaining traction and can position your agribusiness in Portugal as forward-thinking and environmentally responsible.
Finally, exploring partnerships with local restaurants, hotels, and wellness retreats to supply fresh, organic produce or artisanal products can create consistent demand for your goods. By aligning your business with Portugal’s rich agricultural heritage and growing interest in sustainable living, you can establish a thriving venture in this rewarding sector.
8. Language Schools or Translation Services
Portugal’s rising popularity among expats, international businesses, and digital nomads creates a strong demand for business ideas to launch in Portugal within the language and translation services sector. Whether through traditional classrooms or online platforms, businesses that help individuals and organizations navigate the language barrier are well-positioned for success.
Establishing a language school tailored to teaching Portuguese to foreigners is one of the most viable options. Offering general courses for everyday communication alongside specialized programs for professionals, such as legal, medical, or business Portuguese, can attract a diverse clientele. Expanding your offerings to include cultural immersion experiences, such as guided tours or culinary classes, could differentiate your language school in Portugal from competitors.
For corporate clients, providing bespoke language training tailored to industry-specific needs—such as tech, hospitality, or finance—can be particularly lucrative. Businesses looking to onboard international employees or partner with Portuguese firms may seek tailored programs to enhance communication and integration.
Translation and interpretation services are another profitable avenue. With the influx of foreign investors and businesses, there is a growing need for accurate and professional translation in areas like legal documents, real estate transactions, medical records, and corporate communication. A translation business in Portugal that specializes in these fields, supported by certified professionals, can command premium rates.
Digital platforms can amplify the reach of both language and translation services. Launching an online language school with live classes, self-paced modules, or interactive tools can attract students worldwide. Similarly, offering digital translation services with advanced tools like AI-driven software paired with human quality checks can streamline processes and serve a broader audience.
For a creative edge, consider developing a mobile app or subscription-based service offering daily Portuguese lessons, conversation practice with native speakers, or industry-specific glossaries. This tech-based business idea in Portugal aligns with the growing demand for flexible and accessible language-learning options.
9. Artisan and Handicraft Businesses
Portugal’s long-standing tradition of craftsmanship offers immense potential for a business idea to start in Portugal focused on artisan and handicraft products. From intricate ceramics to cork-based creations and handwoven textiles, these locally inspired items hold strong appeal for tourists, expats, and locals alike.
Creating and selling unique Portuguese ceramics, such as the iconic azulejos (decorative tiles) or hand-painted pottery, can serve as the cornerstone of a profitable venture. Portugal’s reputation as a leader in cork production also presents opportunities to design and sell cork-based products like bags, shoes, wallets, and even furniture, tapping into the growing market for eco-friendly and sustainable goods.
Handwoven textiles, including traditional rugs (tapetes) from Alentejo or linens from Viana do Castelo, are other specialties that can be marketed to both domestic and international customers. Collaborating with local artisans to preserve these age-old techniques while innovating with modern designs can give your handicraft business in Portugal a unique identity.
Hosting workshops is another way to diversify income streams. Tourists and locals alike are increasingly interested in hands-on experiences, making crafting sessions an attractive offering. Whether it’s tile-painting, pottery-making, or cork-craft workshops, these interactive sessions provide memorable experiences while showcasing Portugal’s artisanal heritage.
Selling handmade goods online can significantly expand your business reach. Launching an e-commerce platform or utilizing global marketplaces like Etsy allows you to connect with customers worldwide, capitalizing on the global demand for authentic, handmade products. For a digital edge, consider creating a business idea in Portugal that integrates virtual classes or DIY kits for customers who want to experience Portuguese craftsmanship from home.
Pop-up shops in tourist-heavy areas, collaborations with local boutiques, or partnerships with cultural festivals are effective ways to promote your brand locally. By aligning with Portugal’s thriving tourism and cultural sectors, you can showcase the rich stories and traditions behind your products, adding emotional value for customers.
10. Remote Work Infrastructure Services
Portugal’s rise as a hotspot for digital nomads and remote workers presents a unique opportunity for a business idea to launch in Portugal centered on remote work infrastructure. With its affordable cost of living, mild climate, and high quality of life, Portugal attracts professionals from around the world, creating strong demand for coworking spaces, flexible accommodations, and related services.
Setting up coworking spaces in key cities like Lisbon, Porto, or even coastal destinations such as the Algarve or Madeira can be a highly lucrative venture. These spaces should cater to the needs of remote workers by offering high-speed internet, ergonomic workstations, and collaborative environments. For a competitive edge, incorporating features like private meeting rooms, podcasting studios, or wellness areas (e.g., meditation rooms or fitness zones) can make your coworking business in Portugal stand out.
Accommodation solutions tailored for remote workers are another promising niche. Offering co-living spaces that combine private accommodations with shared amenities, such as kitchens and lounges, can attract nomads looking for a sense of community. Coastal or rural regions can also be ideal for remote work retreats, combining productive environments with Portugal’s scenic beauty.
Additional services like networking events, skill-sharing workshops, or local integration programs can add value to your remote work infrastructure business in Portugal. These events not only foster community among digital nomads but also encourage repeat customers and long-term memberships.
Expanding into tech-focused solutions for remote workers is another profitable avenue. A business offering high-speed internet installations in rural areas, mobile Wi-Fi rental services, or cloud storage solutions can cater to both residents and visiting professionals.
To enhance your offerings, consider combining your coworking or co-living space with cultural or recreational activities. Organizing excursions, surf lessons, wine tastings, or guided tours can help remote workers enjoy Portugal’s unique lifestyle while balancing their professional commitments.
Moreover, creating a platform or app to connect digital nomads with local resources, events, and services could complement your physical business. Such an innovation would make your business idea in Portugal appealing to tech-savvy workers who prioritize convenience and accessibility.
Best Cities to Start Your Business In Portugal
Portugal offers a variety of cities that provide fertile ground for starting a business, each with unique advantages:
Lisbon: As the capital and largest city, Lisbon is a dynamic hub for commerce, tourism, and culture. It boasts a vibrant tech scene, numerous co-working spaces, and a strong support network for entrepreneurs, making it ideal for startups and established businesses alike.
Porto: Located in the north, Porto is known for its affordability and growing popularity among retirees and international buyers. The city’s manageable size and pleasant climate contribute to its appeal as a business destination.
Braga: Recognized for its quality of life and economic potential, Braga is emerging as a significant tech hub, attracting both startups and established companies.
Coimbra: Home to one of the oldest universities in Europe, Coimbra offers a rich talent pool and a focus on innovation, making it suitable for businesses in education, technology, and research sectors.
Oeiras: Part of the Lisbon metropolitan area, Oeiras is an important economic hub with a high concentration of multinational companies and well-developed infrastructure, providing a conducive environment for business growth.
Algarve: Known for its tourism industry, the Algarve region offers opportunities in hospitality, real estate, and renewable energy sectors, supported by its mild climate and attractive lifestyle.
How to get the D2 Entrepreneur Visa
The D2 Visa, also known as Portugal’s Entrepreneur Visa, enables non-EU/EEA/Swiss citizens to establish or expand their businesses in Portugal. This visa offers a pathway to residency for entrepreneurs, freelancers, and independent service providers.
Eligibility Criteria D2 Visa
- Business Establishment: Applicants must either set up a new company, acquire an existing Portuguese business, or expand an existing business into Portugal. A comprehensive business plan demonstrating the venture’s economic, social, or cultural impact is essential.
- Financial Resources: While there’s no official minimum investment, it’s recommended to have at least €5,000 for business startup costs. Additionally, applicants should show sufficient funds to support themselves and any dependents, aligning with Portugal’s minimum wage standards.
- Accommodation: Proof of accommodation in Portugal, such as a rental agreement or property deed, is required.
- Clean Criminal Record: Applicants must provide a criminal record certificate from their country of residence.
D2 Visa Application Process:
Obtain a Portuguese Tax Identification Number (NIF): This is necessary for financial and legal transactions in Portugal.
Open a Portuguese Bank Account: Deposit sufficient funds to cover personal living expenses and business startup costs.
Prepare Documentation: Gather all required documents, including a detailed business plan, proof of financial means, accommodation evidence, health insurance, and a clean criminal record certificate.
Submit Application: Apply for the D2 Visa at the Portuguese consulate or embassy in your country of residence. Processing times can vary, so it’s advisable to apply well in advance.
Attend AIMA Appointment: Upon visa approval and arrival in Portugal, schedule an appointment with the Agency for Integration, Migrations and Asylum (AIMA) to apply for a residence permit. The initial permit is typically valid for two years and can be renewed.
Benefit of Portugal D2 Visa
Residency Rights: Live and work in Portugal with access to public services, including healthcare and education.
Family Reunification: Immediate family members can join the primary applicant under the family reunification scheme.
Pathway to Citizenship: After five years of legal residency, applicants may be eligible to apply for permanent residency or Portuguese citizenship, subject to language proficiency and other requirements.
Schengen Area Access: Visa-free travel within the Schengen Zone for up to 90 days in any 180-day period.
Why to work with us
Local Expertise
We know Portugal. Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information.
Holistic Approach
One single channel of communication for the entire process. We provide you with a comprehensive service that covers all aspects of your move, from identifying the ideal residency visa to finding your new home or helping you to settle.
Transparent Service
We recommend what’s best for you based on an extensive process experience that saves time and money to clients. Our pricing is clear and competitive, and we don’t sell services that make us more money.
Simple Process
Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. We are customers ourselves and we know how to serve you.
Frequently Asked Questions About Top 10 Business Ideas to Start in Portugal
What are some profitable business ideas in Portugal?
- Tourism and hospitality services.
- Real estate and property management.
- Organic farming and agribusiness.
- Technology startups and IT consulting.
- Renewable energy solutions.
- Food and beverage ventures (cafés, restaurants, or local delicacies).
- Health and wellness services.
- Language schools or cultural training.
- E-commerce and online retail.
- Creative industries like crafts or digital media.
Why is Portugal a good place to start a business?
Portugal offers a stable economy, favorable tax incentives, a skilled workforce, and growing industries such as tourism, tech, and renewable energy. Its quality of life and strategic location in Europe also attract entrepreneurs.
What industries are booming in Portugal right now?
Tourism, tech startups, renewable energy, organic agriculture, and real estate are among the most dynamic industries in Portugal.
Do I need to speak Portuguese to start a business in Portugal?
While not mandatory, speaking Portuguese can be an advantage for networking and customer interaction. English is widely spoken, especially in the business and tourism sectors.
Are there incentives for starting a business in Portugal?
Yes, Portugal offers several incentives, including tax benefits through the Golden Visa program, funding for startups, and grants for innovation and sustainability projects.
What are the legal steps to start a business in Portugal?
You’ll need to:
- Obtain a Portuguese tax number (NIF).
- Register the business with the Commercial Registry.
- Open a business bank account.
- Secure necessary licenses and permits based on the industry.
- Register with social security.
How much investment is required to start a business in Portugal?
The investment depends on the business type. For small startups, costs can range from €5,000 to €50,000. Larger ventures in real estate or renewable energy may require significantly more.
What are the challenges of starting a business in Portugal?
Bureaucracy and lengthy administrative processes can be challenging, though these are improving. Understanding local market dynamics is also crucial.
What are some niche business opportunities in Portugal?
- Eco-tourism and sustainable travel experiences.
- Digital nomad co-working spaces.
- Exporting Portuguese wine or olive oil.
- Customized tour packages focusing on heritage or gastronomy.
- Tech solutions for the aging population.
Can foreigners own businesses in Portugal?
Yes, foreigners can own and operate businesses in Portugal. Programs like the Golden Visa make it easier for non-EU citizens to invest and reside in the country.
